DCIT, NEW DELHI vs. M/S. THE STATE TRADING CORPORATION INDIA LTD., NEW DELHI

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ITA 1532/DEL/2016Status: DisposedITAT Delhi23 January 2019AY 2012-134 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to interest under Section 244A on self-assessment tax paid, as it falls within the expression 'refund of any amount'. The interest is to be computed from the date of payment up to the date of refund.

What were the facts?

The Assessing Officer disallowed interest under Section 244A on self-assessment tax paid by the assessee. The CIT(A) partly allowed the assessee's appeal, directing the AO to allow interest from the date of payment of self-assessment tax to the date of refund.

What were the issues?

Whether interest under Section 244A is admissible on self-assessment tax paid by the assessee from the date of payment to the date of refund.

Which sections of the Income-tax Act were involved?

Section 244A

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI N. K. BILLAIYA & MS SUCHITRA KAMBLE

For Appellant: Ms. Ashima Neb, Sr. DR
Hearing: 15.01.2019Pronounced: 23.01.2019

This appeal is filed by the Revenue against the order dated 31/12/2015 passed by CIT(A)-33, New Delhi for Assessment Year 2012-13.

2.

The grounds of appeal are as under:-

“1. On the facts and in the circumstances of the case and in law the order passed by Ld. CIT (A) is erroneous and the learned CIT(A) has erred in deleting AO to allow interest u/s 244A from the date of payment of self assessment tax to the date of refund."

2. On the facts and in the circumstances of the case and in law the order passed by , the Ld. CIT(A) is erroneous and the learned CIT(A) has erred in not taking note of the recent decision of the Hon'ble Delhi High Court in the case of CIT Vs. Engineers India Ltd.373 ITR 377 (Delhi) that interest not payable in respect of refund attributable to self-assessment tax voluntary paid by the assessee. Further, it may also be noted that in terms of clause 90 of the Finance Bill 2016 Section 244A is sought to be amended w.e.f 01.06.2016 to allow interest on interest on refund involving self-assessment tax, therefore, it is evident that no such interest was admissible in the absence of such provision and it would apply only to the refunds determined on or after 01.06.2016."

3.

The assessment order was passed on 9/9/2013 thereby the Assessing Officer disallowed interest u/s 244A of the Income Tax Act, 1961 from the date of payment of self assessment tax of Rs.3,41,33,988/- till the date of actual refund.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.

5.

The Revenue is before us.

6.

The Ld. DR submitted that the amendment to Section 244A of the Act is not retrospective and will not be applicable in the present case. The Ld. DR relied upon the order of the Assessing Officer and also relied upon the provision u/s 244A prior to amendment w.e.f. 1/6/2016.

7.

The Ld. AR submitted that the CIT(A) has rightly taken cognizance of the decision of the Hon'ble Supreme Court in case of Engineers India Ltd. Vs. CIT(A) which was relied by the Revenue in Ground No. 2 as the Hon'ble High Court decision is reversed by the Hon’ble Apex Court. The Ld. AR further submitted that as per the prevalent law held in CIT(A) Vs. Satlaj Industries Ltd. (325 ITR 331) has decided this issue in favour of the assessee. Thus, the Ld. AR relied upon the order of the CIT(A).

8.

We have heard both the parties and perused the material available on record. The CIT(A) held as under:- “5. The submissions of the appellant and the facts have been carefully considered. In CIT v Satlej Industries Ltd. (325 ITR 331) in which the Hon’ble Delhi High Court has observed as follows: “where the self-assessment tax paid by the assessee under section 140A is refunded, the assessee would be entitled to interest thereon since the self-assessment tax falls within the expression ‘refund of any amount’. The computation of interest on Self-assessment tax has to be in terms of section 244A(1)(b), i.e. from the date of payment of such amount up to the date on which refund is actually granted. ” 6. In view of the above, the A.O. is directed to allow interest u/s 244A from the date of payment of self assessment tax to the date of refund in accordance with the above decision of Hon’ble Delhi High Court. The Ground is accordingly allowed. There is no need to interfere with the finding of the CIT(A) as the Hon’ble Jurisdictional High Court in case of Satlaj Industries Ltd. has decided this issue in favour of the assessee. Therefore, the appeal of the Revenue is dismissed.

9.

In result, the appeal of the Revenue is dismissed.

Order pronounced in the Open Court on 23rd JANUARY, 2019.

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